Laka details ‘future of insurance’ proposition post Covid-19

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The insurtech has seen people that have not considered cycling previously look into insurance

Laka has revealed its post-pandemic plans as it concentrates its focus firmly on urban mobility in a bid to rebrand.

Covid-19 has meant that the specialist cycling insurtech is in a unique position to benefit from a predicted surge in customers of urban mobility products and an increase in the average price of bikes as commuters switch from cycles to e-bikes to expand the radius they can travel.

This is an area that one of its investors, Creandum, has experience in through Voi, which is a European e-scooter sharing company.

And with cycling being pushed to the top of the agenda as the UK eases lockdown strategies, a piloted rental scheme for e-scooters by the Department of Transport (DfT) could also present another growth opportunity for the insurtech.

Laka has been growing every month since its launch in January 2018, and will be branching out to the Netherlands in Q3 this year acting as a springboard for its new products that it will roll out across Europe.

It follows Laka revealing its plans to set up a post-Brexit hub and expand in Europe after closing $4.7m in equity funding prior to the lockdown.

Volume and value

Tobias Taupitz, chief executive and co-founder at Laka told Insurance Times: “We have grown stronger based on the resources deployed, [therefore] we have seen growth on a relative basis.”

The lockdown has seen many first-time cycle and bike riders look at insurance policies.

“We have seen unique samples of people that have not considered riding a bike in London now looking online [for insurance],” he said.

Taupitz believes that this will expand the cycling market in two ways – firstly through volume and secondly in value with different types of bikes.

“In a post-Brexit world, we needed a European licence in a European country,” he said. ”We decided to [choose] the Netherlands as it has the highest per capita spend on bikes in Europe. It’s a good starting point before we expand out further.”

Rebrand

Meanwhile Laka will also be rebranding, Taupitz said that while the insurtech is going to keep its name, it will recalibrate towards urban mobility, change its tone of voice, engagement with its customers and products.

It will also be launching some new products in recovery and health in mid-June.